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That two countries, India and the United States of America, with so much in common should have drifted apart for so long has baffled many. Of course, there are reasons for it, but there are equally compelling arguments in favour of forging better ties. Perhaps the most important factor contributing to the drift has been the inability of the two to identify common interests. Both have been seized by many misconceptions; both have tended to look upon their mutual relations in the context of third countries.

India's relationship with the United States has been a subject of debate and discussion. Both nations despite being large and stable democracies have had a contentious relationship demonstrating that shared value systems has not always been an insurance for building friendly relations.

The photo-ops with CEOs and students notwithstanding, Secretary of State Hillary Clinton’s much anticipated visit to India did not reach anywhere near the euphoria that marked the visit of her husband President Clinton to India in 2000. Her interactions also seemed to lack the genuine bonhomie between two friends that was seen during the visit of President Bush in 2006.

U.S. Secretary of State Hillary Clinton addressed the U.S.-India Business Council in Washington D.C. on 17th June rekindling hope that India-U.S. relations could regain some of the traction lost under the Obama administration. She is now on a visit to India and it would be keenly watched for the actions she would take to match her words, especially since there is a growing uneasiness at the U.S. insensitivity to some of India’s important concerns. And the list of issues that could poison India-U.S. relations is getting longer.

The related issues of H1B visas and outsourcing have once again come to the fore and could prove to be a troublesome issue in India-US relations. In his address to the Joint Houses of Congress on February 24, 2009, President Obama declared that he would nullify tax benefits for American companies that outsourced their services. The same day, the US Citizenship & Immigration Service (USCIS) released data showing that four Indian outsourcing companies, Infosys, Wipro, Satyam, and TCS, accounted for more than 10,000 of the 65,000 H-1B visas issued by the US in 2008.

In early January 2009, the Financial Times reported “preliminary talks” between US and India on possible sale of systems for an Indian ballistic missile defence (BMD) shield. The daily quoted US embassy officials in New Delhi as saying that technical talks had taken place and that US defence officials had conducted computer simulations with Indian counterparts to demonstrate the capabilities of this technology. The Indian media, and some foreign ones, picked up the story and projected the report as an impending US-India deal on missile defence cooperation.